Lord Davies of Brixton has sounded the alarm in the House of Lords, urging the Department for Work and Pensions (DWP) to “recognise the case for urgency” in addressing the Parliamentary and Health Service Ombudsman’s (PHSO) final report. The report calls for compensation for millions of women born in the 1950s who were affected by changes to their State Pension age.

He highlighted that the ongoing delay “is leaving the people affected prey to scammers, who are offering to assist them in making claims” and stressed that “this issue needs to be resolved as quickly as practical”. The Labour peer also pointed out that the Ombudsman “made it clear that these women suffered from maladministration and that they are entitled to redress”.

Baroness Sherlock, the Parliamentary Under-Secretary of State for DWP, clarified the situation in response: “To be absolutely clear, because there has been no response to the report, there is no compensation scheme. Anyone claiming to offer it is scamming and nobody should touch it – please can that message go out loud and clear.”

She further assured that the UK Government is “looking very closely at the findings of the ombudsman and will respond as soon as is practicable”.

The Women Against State Pension Inequality (WASPI) campaign has sounded the alarm over a “deeply concerning” surge in fraudulent compensation claim forms circulating online. This past summer, WASPI disclosed that several unofficial websites had popped up, falsely promising women affected by the abrupt changes to the State Pension age that they could claim up to £2,950 based on their situation, reports the Daily Record.

Campaigners have warned that these sites, seemingly originating from abroad, are deceptively enticing women born in the 1950s with the prospect of payouts via compensation forms, but in reality, they are heartless con artists targeting the elderly. The PHSO report released on March 21 clearly stated that “Parliament must urgently identify a mechanism for providing that appropriate remedy” and suggested compensation at Level four of its scale, valued between £1,000 and £2,950.

As no official compensation scheme has been declared, any website offering assistance to claim is fraudulent and should be reported to Action Fraud. Scottish pensioners duped by these scams are advised to contact Police Scotland on 101.

Just this week, Pensions Minister Emma Reynolds acknowledged that the DWP is actively “considering the costs of setting up a compensation scheme” for those impacted.

In a detailed reply to Steve Darling, the Liberal Democrat shadow work and pensions spokesperson, Pensions Minister Ms Reynolds clarified on Tuesday that the Department for Work and Pensions (DWP) had identified additional costs while examining the Ombudsman’s investigation and report. She stated: “As part of our work on the Ombudsman’s investigation and report, we have been considering the costs of setting up a compensation scheme.”

The Pensions Minister further noted: “The Ombudsman used DWP‘s broad estimates in their report published 21 March 2024, stating that ‘Compensating all women born in the 1950s at the level 4 range would involve spending between around £3.5 billion and £10.5 billion of public funds’. This estimate excludes administration costs.”

Ms Reynolds also mentioned: “This government is giving its full and proper consideration to all areas of the Ombudsman’s report.”

She concluded: “Once this work has been undertaken, we will be in a position to outline our approach.”

Mr Darling had inquired whether the DWP had conducted financial modelling for a potential compensation scheme following the issues highlighted in the PHSO’s final report.